AT&T’s Other Businesses in Mexico

The company has begun to look beyond traditional connectivity services, dominated by its main competitor America Movil, and has set its sights on B2B technology services.

AT&T Mexico seeks to expand its offer beyond conventional connectivity services to meet the needs of business customers and improve its position in the market.

The company chaired by Monica Aspe found a good source of income in the wholesale telecommunications market in Mexico since it entered the wholesale market, through a partnership with Telefonica Mexico signed in 2019. Since then it has attracted several competitors, such as Sky and Megacable, to use its shared network. However, it is a competitive market, where América Movil and Altan Redes play.

Sergio Almallo, Chief Digital and Marketing Officer (CDMO) of AT&T Mexico, recognizes that connectivity services, which were the most relevant just a few years ago, will gradually fade into the background as 5G technology allows new cases of use for metaverse, augmented reality, IoT, cybersecurity and artificial intelligence, among others.

The company has set its sights on B2B technology services such as private networks, connected vehicles and the Open Gateway initiative, to meet the needs of business customers, improve its market position and make profitable its investments in the new network. Today, the company already serves three million companies from various sectors.

For Jesus Romo, an analyst at GlobalData, the Mexican market presents attractive opportunities for the expansion of digital transformation services in industries such as manufacturing, logistics and transportation, energy, among others. “Telecoms seek to meet that demand by becoming connectivity providers and technology partners, a complete solution for industries,” he says.

One of AT&T Mexico’s bets has been on private networks, which are private communications that companies require to connect different facilities under their control with greater security. The company began deploying an industrial-grade LTE wireless private network at APM Terminals in Puerto Progreso, Yucatán, using the Nokia Digital Automation Cloud (DAC) platform to remotely and autonomously operate cranes at docks and yards, as well as enabling new capabilities. In the terminal.

AT&T carries out technological tests in its 5G Innovation Lab, together with Qualcomm, Celona, Axity and Veea, with the aim of developing use cases that help accelerate its adoption within Mexican industries. According to Almallo, other sectors such as agriculture and mining are also seeking to reinvent their operations through this type of project.

“All this will translate into greater efficiency and productivity for companies that adopt these technologies, which in turn will generate new business opportunities for AT&T in the Mexican and global markets,” says Almallo.

More and more new vehicles are equipped with transmitters, receivers and home modems that connect to the Internet via a mobile data connection and allow navigation and the connection of various devices. The telecommunications company already participates in this segment through alliances with Ford, Lincoln, Nissan, Infiniti and Volvo to allow their models to be used as Wi-Fi access points.

But Almallo also believes that while the Wi-Fi hotspot business is growing, this connected car business is just “the tip of the iceberg.” As connectivity densifies, other functions can be performed in cars, such as receiving regular software and navigation updates, accessing entertainment options, and allowing the company to collect valuable fleet data to enhance features and enhance the experience. of the user.

“Although the hotspot business is growing, I think it is marginal because normally users who go in the car have a terminal (a device), on the other hand, in assisted driving there is more potential,” says the manager.

technological optimism

AT&T participates in the Open Gateway initiative, which aims to open the network to new digital developers to create new applications and consumption and monetization models for their networks. This will allow the telecommunications company to take advantage of the experience and creativity of other developers and companies to create innovative solutions for their clients and generate new business opportunities.

Until now, the initiative has focused on the industrial and manufacturing sector, with the goal of improving the efficiency and safety of operations, but AT&T hopes to expand this initiative to other sectors, such as health and mobility, in the near future. “Without a doubt, this new business will be relevant to its operation,” says Gerardo Mantilla, an analyst at Artifex Consulting.

connected vehicles

The company also sees great potential in the integration of vehicles connected to the 5G network, which would allow greater interaction between cars and their environment, as well as communication between vehicles to avoid accidents and improve traffic.

The future points to the automation of industries and the connection of everything everywhere, which can pose a danger to human hands. However, Almallo claims to be a “technology optimist.”

“I think it will make us live better. We have to adapt and along the way there will be development and training challenges. But we have to see how we include more people, how we connect others, educate and prepare ourselves for that future”, concludes Almallo.

 

Reviewer overview

AT&T's Other Businesses in Mexico - /10

Summary

The company has begun to look beyond traditional connectivity services, dominated by its main competitor America Movil, and has set its sights on B2B technology services.

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